Barriers to Foreign Investment in Nigeria's Aviation Sector

Experts, including former rector of the Nigerian College of Aviation Technology, Samuel Caulcrick, have highlighted several barriers to foreign investment in Nigeria's aviation sector, including economic instability, high operational costs, and weak investor confidence. Caulcrick noted that despite Nigeria's efforts to attract investors, the country has failed to provide necessary assurances for returns, leading to a lack of confidence.

He pointed out that significant financial leakages, including illicit financial flows and oil theft, amounting to $17.72 billion to $46 billion annually, create a volatile business environment that hampers long-term foreign direct investment. Additionally, high operational costs, such as a 5% tax on ticket sales and cargo sales, deter potential investors.

Aviation experts warn that these leakages weaken the government's capacity to invest in critical infrastructure. John Ojikutu, another aviation analyst, cautioned against policy changes without understanding the existing revenue structure and called for a thorough review of aviation charges, particularly ticket sales.